Posted on September 24, 2024 by Thuy Pham and Stuart Simington

ALERT: Amendments to the Regional Development Act 2004

In September 2023, the NSW government announced in the 2023/2024 budget that it would commit an initial investment of $350 million over 4 years into the Regional Development Trust Fund. This is the first step in the Regional Development Roadmap which set out key elements of how the government will invest in regional NSW to meet the needs of the regional communities. In June 2024, the government announced an additional $50 million bringing the total investment up to $400 million.

The Regional Development Amendment Bill 2024 has now passed both Houses and will amend the Regional Development Act 2004 (RDA). The RDA will have the effect of enhancing the framework for how the Regional Development Trust can be used and monitored to achieve the purpose of the scheme in assisting regional communities.

In broad terms, amendments to the RDA are:

  • New objects are introduced to the Act which are broader in scope;
  • Types of financial investment that can be provided from the Regional Development Trust are expanded to include reinvestment, money directed to be paid into the Fund by a government agency and voluntary contributions;
  • New requirements concerning the publication of an annual report, investment strategy and governance framework are in place to strengthen accountability and transparency
  • The Act now mandate that the Minister must establish a Regional Development Advisory Council (Advisory Council).

Prior to the amendments, the RDA was complementary statute to help fil gaps left by the market system, as seen in s3(a) of the Act as initially implemented. The recent amendments suggest that the vision of the NSW Government for the RDA has expanded to the provision of a fuller, more comprehensive and powerful framework for strategic intervention in the economies of regional New South Wales.

Such an approach suggests a shift in the focus of the government from leaving regional investments and development to the market to a more centralised and regulated approach. This can be observed most clearly through the new objects added to the RDA:

(a) to promote economic and employment growth in regions in accordance with the principles of ecologically sustainable development,
(b) to support sustainable economies, a healthy environment and resilient communities in regions,
(c) to support place-based solutions, targeted to the development problems of particular locations and developed in collaboration with the local community, that promote improved economic, environmental and social outcomes in regions,
(d) to assist communities in regions to capitalise on regional strengths by supporting the diversification, adaptation and resilience of regional economies, including in relation to established and emerging primary and other industries,
(e) to support the transition of communities affected by economic, environmental and social change,
(f) to facilitate the economic and social development of Aboriginal communities and Aboriginal enterprises in regions,
(g) to encourage cooperation in relation to the matters in paragraphs (a)–(f) among all tiers of government, including local government, the private sector and not-for-profit organisations

In December 2023, the Minister for Regional NSW appointed 7 members to the Advisory Council for an initial 12-month term. Section 12(5) of the amended RDA provides that in exercising the Minister’s function under this Act, the Minister must consider any advice provided by the Advisory Council.

The relevant documents are

To discuss this article please leave a comment below or contact Stuart Simington on 8235 9704 or Thuy Pham on 8235 9731.

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